Economics Competition MCQs
Economics Competition MCQs
The following Economics Competition MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Economics Competition. We encourage you to answer these multiple-choice questions to assess your proficiency.
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1: Creating _____ utility is the responsibility of the production function.
A. Place
B. Form
C. Time
D. Ownership
2: What is perfect competition in economics?
A. A market structure with a large number of buyers and sellers, homogeneous products, and free entry and exit
B. A market structure with a few large sellers dominating the market
C. A market structure with one dominant seller and many buyers
D. A market structure where products are differentiated and sellers have some degree of market power
3: What is the main characteristic of a monopolistic competition market?
A. A few large sellers dominating the market
B. A single dominant seller controlling the market
C. Homogeneous products and perfect information
D. Differentiated products and some degree of market power
4: Which market structure has the highest level of barriers to entry?
A. Perfect competition
B. Monopolistic competition
C. Oligopoly
D. Monopoly
5: Which of the following is an example of an oligopoly market?
A. Local grocery store
B. Fast food restaurant chain
C. Farmer's market
D. Stock exchange
6: What is a cartel in the context of economics?
A. A group of firms that collude to restrict competition and control prices
B. A government agency that regulates market competition
C. A market structure with a single dominant seller
D. A market structure with perfect competition and no barriers to entry
7: What is a barrier to entry in economics?
A. The cost associated with producing goods or services
B. The legal requirement to obtain a license to operate in a particular industry
C. Anything that prevents new firms from entering an industry and competing with existing firms
D. The level of competition in the market
8: What is the purpose of antitrust laws in economics?
A. To prevent market failures and ensure efficient competition
B. To protect consumers from price discrimination
C. To regulate international trade and protect domestic industries
D. To promote mergers and acquisitions for market consolidation
9: What is the main characteristic of a natural monopoly?
A. A single dominant seller in the market
B. Homogeneous products and perfect information
C. Barriers to entry due to economies of scale
D. Differentiated products and some degree of market power
10: Which of the following is a characteristic of monopolistic competition?
A. A single dominant seller in the market
B. Homogeneous products and perfect information
C. Price-taking behavior by firms
D. Product differentiation and non-price competition
11: What is the main objective of competition policy in economics?
A. To promote fair competition and protect consumer welfare
B. To maximize profits for firms in the market
C. To regulate prices and control market entry
D. To promote market consolidation and eliminate competition
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Economics Competition MCQs
